Is your website ready for the digital investor relations era?

As COVID-19 has accelerated the digitalization of the way companies do business, so has the way companies conduct their investor relations. In our previous article, “MiFID II and its impact”, we highlighted that companies and their IROs are being forced to take a more active role in investor communication due to MiFID II. The pandemic has further heightened the need to educate investors and improve transparency. With the prevalence of virtual events, investors today can be easily overwhelmed with meeting invites. Therefore, companies need to ensure that their digital investor relations management is done correctly to ensure effective communication with investors.

A good investor relations website should be like a compelling storybook that helps investors understand a company’s past, present, and future in an effective way. Over the years, we’ve seen some great IR websites, as well as some not-so-great ones. Here are several best practices to keep in mind when developing a top IR website.

A good homepage

The home page is the page investors will see when they first visit the website, and it often gives the first impression of the company. By designing a clear page using dashboards, built-in menus, interactive charts, and more, investors can quickly find and navigate information on your investor relations site with ease. You can even consider using call-to-action content with links on the homepage to entice investors to dig deeper into the information the company wants to provide.

Attractive investment thesis

It will be a plus if investors are able to quickly understand a company’s investment thesis based on the information provided on the website (such as industry position, competitive advantages, future development, etc.). For example, Shell (AMS: RDSA), the world’s second largest oil and gas company, lists three major investment theses with links on the investment theses page. Therefore, investors can quickly navigate through the company’s three core values ​​and better understand its strategies and results through the hyperlink if they are interested.

Timeliness and accessibility of information

Timeliness and accessibility of information (such as news, disclosure of material information, financial reports, etc.) is essential for a good investor relations website. Consistency in disclosure of information is also very important. With a clear and logical arrangement, you can help investors find information faster. The financial results page is a page often visited by investors; therefore, we suggest companies consider consolidating key historical financial figures and ratios into a summary so that investors can have a better understanding of the long-term financial trend. You can even provide an interactive option on the website for investors to customize and download the data according to their needs. Additionally, the company may also consider providing multiple download formats (HTML, PDF, and even Excel) to ensure that investors with different preferences can access your information. In addition, the investor relations website should provide information on investors’ historical activities and upcoming events with relevant materials for investors to catch up or participate.

ESG initiatives

In our previous article, “Should companies invest in ESG?” we mentioned the tendency of investors to integrate ESG into their investment decision-making process. Therefore, it is also very important to illustrate the company’s sustainability efforts and results on the investor relations website. In the ESG section, companies can also divide the page into different dimensions (for example, into the three dimensions “environmental”, “social” and “governance”) and communicate objectives, plans, execution and results based on the respective data. ., also a link to guide investors for more details or to download the company’s sustainability report is also highly recommended.

Allow investors to easily connect and stay in touch

Through contact messages, email reminders, and meeting request features, companies should try to provide easy access for investors who want to connect. You can also consider placing contact information directly at the bottom of the company’s webpage, which is also an effective way for investors to get in touch with the company directly.

Mobile-first design

With the proliferation of mobile devices, more and more investors are using their mobile devices to browse investor relations websites. Therefore, it is important to ensure that the investor relations website supports mobile browsing and provides a smooth experience.

Editor’s note

To give our readers a deeper and more comprehensive understanding of investor relations from an investor’s perspective, DIGTIMES has invited QIC as a contributing partner to share their insights. The article is part 15 of the QIC Inside Investor Relations series, originally published on CIQ website.)

About Joan Dow

Check Also

Baker McKenzie advises Pacoma on the sale to Legget & Platt | Writing

Baker McKenzie advised Pacoma Holding S.à rl in connection with the sale of the Pacoma …